UBS downgraded Interpublic Group to Sell from Neutral with a price target of $29, down from $34. The firm thinks consensus estimates have not fully factored in the impact of account losses such as the recent Amazon media loss. The analyst expects Interpublic’s organic growth in 2025 to decline by 1.1% versus the consents estimate of up 1.4%. A decline in revenues will impact margins as the company’s staff incentives are already low versus history, the analyst tells investors in a research note. UBS thinks the market is not sufficiently pricing in the risk that there might be structural reasons that Interpublic is losing clients and that its strategic initiatives underway may not be sufficient to resolve them quickly.
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